Rapid core inflation rise leaves Bank of England behind, skyrockets bond yields

quick take

• UK headline CPI inflation fell to 8.7% in April, well off expectations of 8.2%.
• crypto slate previously reported that global core inflation was the biggest problem.
• The UK core CPI rose from 6.2% to 6.8% year-on-year, the highest level since 1992.
• Additionally, core CPI m/m was forecast at 0.7%, accelerating to 1.2%.
• The result was a sharp rise in yields and a severe inversion across the yield curve.

The Bank of England fell behind in the aftermath of a sharp rise in core inflation, and the spike in bond yields first appeared on CryptoSlate.